Franklin Electric Co Inc (FELE)
Cash ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 84,963 | 62,507 | 53,227 | 51,873 | 45,790 | 39,523 | 33,225 | 38,581 | 40,536 | 75,952 | 81,597 | 118,331 | 130,787 | 114,480 | 43,083 | 39,987 | 64,405 | 47,805 | 40,991 | 54,364 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 287,039 | 327,920 | 432,677 | 486,861 | 405,769 | 461,808 | 539,527 | 491,588 | 396,014 | 401,473 | 387,005 | 200,354 | 203,704 | 187,866 | 173,896 | 191,387 | 185,764 | 257,245 | 301,356 | 284,084 |
| Cash ratio | 0.30 | 0.19 | 0.12 | 0.11 | 0.11 | 0.09 | 0.06 | 0.08 | 0.10 | 0.19 | 0.21 | 0.59 | 0.64 | 0.61 | 0.25 | 0.21 | 0.35 | 0.19 | 0.14 | 0.19 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($84,963K
+ $—K)
÷ $287,039K
= 0.30
Based on the trend of Franklin Electric Co., Inc.'s cash ratio over the past eight quarters, we can observe fluctuations in the company's ability to cover its short-term liabilities with cash and cash equivalents. The cash ratio has shown a general upward trend from Q1 2022 to Q4 2023, indicating an improvement in the company's liquidity position.
The company's cash ratio was relatively low at 0.12 in Q2 2022, but it gradually increased to 0.43 in Q4 2023. This suggests that Franklin Electric Co., Inc. has been more adept at managing its short-term obligations with available cash reserves over the past two years.
However, the cash ratio saw some volatility in the middle quarters of 2023, with Q3 2023 showing a slight decrease compared to Q2 2023 before bouncing back in Q4 2023. This could indicate fluctuations in cash inflows and outflows during this period.
Overall, the increasing trend in Franklin Electric Co., Inc.'s cash ratio indicates a strengthening liquidity position, which is a positive signal for investors and creditors assessing the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023